Clarins and USAID invest heavily in sustainable shea production in Côte d’Ivoire
22 Jun 2023 --- Under the Global Development Alliance, the United States Agency for International Development (USAID) has invested over US$8.5 million as part of a US$25 million Sustainable Shea Initiative to support the competitive industry in seven West African countries, including Côte d’Ivoire.
The investment was disclosed at the 13th Global Shea Alliance (GSA) Conference in Abidjan, Côte d’Ivoire, which has prioritized “building resilient supply chains.”
In addition, the GSA has facilitated the establishment of two processing centers in northern Côte d’Ivoire in partnership with Clarins Cosmetics and the Savannah Fruits Company. Shea butter is commonly used in personal care products for adding moisturizing benefits.
“The US government recognizes the important role of the private sector in Côte d’Ivoire and across all countries in West Africa. We see the private sector as the engine of growth and the competitiveness of these companies in the face of global economic challenges helps spur economic growth for the countries and ensure job creation,” says Joann Lockard, deputy chief of mission of the US to the Republic of Côte d’Ivoire.
“That is why most USAID interventions in the region, especially in the shea industry, have been designed to complement private sector development strategies.” The new shea processing facility is expected to start operations later this year.
Shea sector resilience
The shea sector is a billion-dollar market representing around 16 million women.
Thus far, the project has reached and trained 4,600 women collectors, formed eight co-operatives, provided seven warehouses and facilitated US$122,607 in private sector investments into Côte d’Ivoire to match US$43,668 of US government funds.
“Currently, the shea sector represents 16 million women, a US$2 billion market, eight major producing countries and over 100 consumer countries,” says Jean-Arnaud Janvier, Africa supply chain manager for Bunge Loders Croklaan.
“In the last 20 years, this sector has recorded over 600% growth thanks to increased demand, targeted policies and substantial investments by the private sector, whether through new production assets, the development of new applications or sustainability programs.”
The COVID-19 pandemic and the armed conflict between Russia and Ukraine have delivered major shocks to vegetable oils and fats markets and value chains.
“Similarly, the challenges associated with the new Economic Substance Regulations in Europe and the US are compelling us to collaborate even more on the environment and human rights,” Janvier explains.
“Despite all of this, the shea sector has exhibited strong resilience based on healthy demand, increased crushing and fractionation capacity both in Africa and around the world, and a strong commitment from the industry to continue investing in the sustainable supply of shea kernels and butter.”
Earlier this year, the GSA signed an agreement with the African Development Bank’s Africa Climate Change Fund to help create climate-resilient shea-producing communities in Togo and Burkina Faso.
Trade centered on women’s empowerment
Building on this year’s conference theme, “building resilience,” the importance of developing strong partnerships and fostering close collaboration between women collectors and processors (producers, processors, traders, exporters and end consumers) was emphasized.
“Resilience is not just about managing risk. It also means promoting social inclusion, strengthening workers’ rights and promoting fair business practices,” explains Mamatou Djaffo, president at GSA.
The 13th Global Shea Alliance delegation.
“We must ensure that all stakeholders, and in particular rural women – the main players in the global shea value chain – can benefit equitably from the fruits of their labor and enjoy a decent quality of life.”
Djaffo continues: “This is no longer a luxury, but an imperative, indeed an obligation, to ensure the continuity and sustainability of this important value chain.”
The president’s plan
Djaffo has contributed to establishing a network of over 70,000 women shea collectors and processors united within the Fédération Nationale des Productrices de Karité du Bénin and helped set up the shea inter-profession in Benin.
“For the 2023-2026 term, in my capacity as president, I would like to work to intensify our alliance’s activities around restoring shea parks and developing income-generating activities for cooperatives and processors, promoting the industry and working to improve quality and competitiveness,” says Djaffo.
New industries are planned in Côte d’Ivoire and Nigeria and a pilot phase for an edible shea oil production unit is underway in Benin.
“I would like to take this opportunity to appeal to all members to report data on their various projects and initiatives to the Alliance Secretariat to help us better assess our joint progress,” Djaffo requests.
Companies in Côte d’Ivoire are taking advantage of the different US government interventions.
“Under the Africa Growth and Opportunities Act initiative, Côte d’Ivoire has the opportunity to export over 6,000 products to the US tariff-free. Côte d’Ivoire has exported products valued at US$3.1 billion under the AGOA initiative, from agricultural products to textiles and general goods to date,” Lockard concludes.
By Inga de Jong
